lendify investor presentation q4 2018 (large) · 3 marketplace lending is a massive global trend...
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1
INTRODUCTION
2
THE FINANCIAL INDUSTRY HAS A MUCH LARGER PROFIT POOL THAN RECENTLY DISRUPTED INDUSTRIES
BANKING AND ASSET MANAGEMENT
1.3 RETAIL SECTOR (1)
0.7COMMUNICATIONS (2)
0.5
PRINTING & PUBLISHING
0.1RECENTLY DISRUPTED INDUSTRIES
(1) Excluding motor vehicles (2) Transmission of sound, images, data or other information via cables, broadcasting, relay or satellite.Source: The Bank of the Future, Miklos Dietz, McKinsey
2015 global profits by industry, USD trillion
3
MARKETPLACE LENDING IS A MASSIVE GLOBAL TREND BUT STILL ONLY REPRESENTS 2 % OF BANK
2 % MARKETSHARE+ 100 %
60 BEUR MARKETPLACE CONSUMER LENDING (1)
EU & USA (2) 2016
30 BEUR MARKETPLACE CONSUMER LENDING (1)
EU & USA (2) 2015
(1) Unsecured Consumer Loans (2) Includes the top 5 platforms in EU and USA respectively (estimation of outstanding balances)
3 000 BEUR BANK CONSUMER LENDING
EU & USA (1)
CONSUMER LENDING
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BANK CONSUMER LENDING IS VIRTUALLY UNTOUCHED BY MARKETPLACE LENDING IN SWEDEN…...but the requisites for its success are very strong
HIGHLY PROFITABLE SEGMENT OF THE MARKET
1) Unsecured Consumer Lending
HIGH-QUALITY CREDIT DATA EASILY AVAILABLE
LOW AND STABLE CREDIT LOSSES
WELL ESTABLISHED INFRASTRUCTURE FOR COLLECTING DEBT
REGULATED MARKET
DIGITAL SOLUTIONS FOR IDENTIFICATION AND PAYMENTS
20 BEUR BANK UNSECURED CONSUMER
LENDING SWEDEN (1)
5
WHAT IS LENDIFY?
THE LEADING
ONLINE MARKETPLACE
LENDING PLATFORM IN SWEDEN
UNSECURED
CONSUMER LOANS
TO PRIME SEGMENT
(LOW RISK)
WELL CAPITALIZED COMPANY:
223 MSEKIN TOTAL
EQUITY FUNDING
LICENSEDBY THE
SWEDISH FSA (SW.
FINANSINSPEKTIONEN)
55
CONNECTS BORROWERS WITH INVESTORS 36
EMPLOYEES
10 000ACTIVE INVESTORS
GROWTH (LTM): 117 %AVERAGE NET RETURN: 5 %
1 679 MSEK LENT TO BORROWERS
GROWTH (LTM): 170 %AVERAGE INTEREST RATE: 10 %
ACCESS TO:
INSTITUTIONAL CAPITAL
6
PAID OUT LOANS2014 – 2018, MONTHLY CUMULATIVE
2014 2015 2016 20170
MSEK
50MSEK
100MSEK
150MSEK
350MSEK
200MSEK
400MSEK
250MSEK
450MSEK
300MSEK
500MSEK
550MSEK
600MSEK
650MSEK
700MSEK
750MSEK
800MSEK
850MSEK
900MSEK
950MSEK
1000MSEK
1050MSEK
1100MSEK
1100MSEK
1150MSEK
1200MSEK
1250MSEK
1300MSEK
1350MSEK
2018
1400MSEK
1450MSEK
1500MSEK
1550MSEK
1600MSEK
1650MSEK
1700MSEK
• Soft launch of platform• Seed-round of 20 MSEK completed valuation approx. 60 MSEK
2014
2015
2016
2017
• Hard launch of
platform
• Sophisticated credit
decision- and scoring
process implemented.
• Function for
compliance and risk
control (FCG AB)
and internal audit
(Deloitte) established.
• Bank ID identity
verification introduced
• Swedish FSA
license granted
• Agreement with
Lindorff as backup
services provider
reached.
• A-round 70MSEK
completed valuation
approx. 210 MSEK
• Entered into
partnership with
Trustly
• Launched secondary
loan market
• Launched PSD2
enabled data usage
• Warehouse facility of
100 MSEK established
• First bond issue
of 200 MSEK
• Second bond issue
of 100 MSEK
• Share issue
of 112 MSEK
2018• Bond issue of 400 MSEK
(DnB and Carnegie)
• Launch of loyalty program
“Lendify Rewards” to
educate and incentivize
borrowers to become
investors
• Establishes an advisory
board
• Warehouse facility
increased to 200 MSEK,
now with 100 MSEK from
a Swedish bank
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HOW DOES IT WORK?
LENDIFY´S TRANSPARENT ONLINE PLATFORM
Marketing
Credit Assessment
Contracts
Payments
Customer Service
Compliance, Risk Control & Internal Audit
BANK
LOAN FUNDING (BALANCE SHEET)
LENDIFY
Bank Retail investors
Institutionalinvestors
Marketing
Credit Assessment
Contracts
Payments
Customer Service
Compliance, Risk Control & Internal Audit
Debt Collection Debt Collection
LOAN FUNDING ("PEERS")
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INVESTMENT
TRANSPARENT ONLINE PLATFORM FOR INVESTORS
LIQUIDITY AND
INVESTED CAPITAL
ACCOUNTS AND INVESTMENTS
LOAN PORTFOLIO DATA (DURATION,
RISK ETC.)
CASH FLOW PLAN
RETURN OVER TIME
SUPPORTING SERVICES
STRINGENT CREDIT DECISIONS PROCESS
~10%Current
Approval Rate
Minimum Criteria for Borrowers• At least 18 years old and resident in Sweden• No payment remarks• No outstanding debt with the Swedish Debt Enforcement Authority• Stable annual income of at least SEK 180 000• Swedish bank account and Bank ID
Target approval rate to be reach by OPTIMIZATION of the channel mix and FINE-TUNING of internal processes.
BANK IDVERIFICATION
DATACOLLECTION
CREDITCHECK
ELECTRONICALBANK STATEMENT
VERIFICATIONOF COLLECTED
DATA
1 2 3 4 5
LEFT TO LIVE ONCALCULATION
5
9
9
AVERAGE BORROWER AND LOAN CHARACTERISTICS
10
40YEARS OF AGE
INCOME
340000 SEK P.A.
CAR PURCHASE
HOME IMPROVEMENT
DEBT CONSOLIDATION
MARRIED /COMMON LAWS
SIZE 115000 SEK
INTEREST 10 %
DURATION 9 YEARS
LIVES IN
RURAL AREASEMPLOYMENT PERMANENT JOB
9
LENDIFY REWARDS
11
LOWERINTEREST
RATE
PERSONALFINANCESCHOOL
TRANSPARENCY& INSIGHT
BEHAVIORAL
UNIQUEIN THE
INDUSTRY
TURNINGBORROWERS
INTOINVESTORS
LOWERCREDITLOSSES
MORELOYAL
CUSTOMERS
INCENTIVETO
PAY ON TIME
THROUGHGAMIFICATION
CHANGE
10
ASSET CLASS CHARACTERISTICS
12
”OLD” ASSET CLASS
WITH DECADES
OF TRACK RECORD
MONTHLY CASH FLOW
(PRINCIPAL + INTEREST)
10%
INTEREST RATE
1% NET CREDIT LOSSES
5%
NET RETURN
4% LENDIFY’S SERVICE FEE
≈ 200 BSEK
BANKS’ EXPOSURE
TO ASSET CLASS
UNCORRELATED
STOCK MARKETWITH THE
LENDIFY’S PROVISIONAL
PROTECTED BYCAPITAL
VARIABLEINTEREST RATEON UNDERLYING LOANS
SECONDARY MARKET
LIQUIDITY THROUGH
CREDIT LOSSESLOW AND PREDICTABLE
FUND
13
DISTRIBUTION OF:
• INVESTORS
• BORROWERS
12
WHAT DO WE WANT TO ACHIEVE?
14
MARKETPLACE WITH 5 % (10 BSEK)
OF THE SWEDISHUNSECURED LOANS
MARKET
A HUB THAT OFFERS MULTIPLE TYPES OF LOANS AND CATERS FOR SEVERAL
TYPES OF INVESTORS
< 5 YEARS
< 10 YEARS
15
FREDRIK WALLENBERG
WHO ARE THE PEOPLE BEHIND LENDIFY?BOARD OF DIRECTORS
ERLING GUSTAFSSON (Chairman) JOHN-CHRISTIAN DE CHAMPS (Founder)
MARTIN GORNEMATTIAS LINDROTH ELISABET LUNDGREN PETER CLASON
16
JOSÉ CARTRO (CTO)Nordax / Royal Institute of Technology
ERIK WIKANDER (CMO/CPO)eDreams ODIGEO, PwC / University of Stockholm
NICHOLAS SUNDÉN-CULLBERG (CEO)Morgan Stanley / Stockholm School of Economics
ERIKA ELIASSON (CSCO)Erik Penser / University of Uppsala
VINCENT KOLB (CCO)Citibank, Marginalen / Stockholm School of Economics
MAGNUS LINNERSAND (CFO)Hoist Finance / Stockholm School of Economics
WHO ARE THE PEOPLE BEHIND LENDIFY?MANAGEMENT TEAM
HANNA BJURSTRÖM (CLO)Lindorff, Intrum / University of Stockholm
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WHO ARE THE PEOPLE BEHIND LENDIFY?ORGANIZATION
NICHOLAS SUNDÉN-CULLBERGCEO
ERIKA ELIASSON INVESTOR RELATIONS
ERIK WIKANDER MARKETING
MAGNUS LINNERSAND FINANCE
VINCENT KOLB CREDIT
JOSÉ CARTRO IT
+2 FTE +1 FTE +4 FTE +10 FTE +10 FTE
COMPLIANCE RISK CONTROL INTERNAL AUDIT
JOHN-CHRISTIAN DE CHAMPSTECH EXPERT
HANNA BJURSTRÖM LEGAL
+1 FTE
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